CONTENTS

(AMNA) -- A crucial Cabinet meeting, chaired by prime minister George
Papandreou, began in Parliament on Sunday evening, which is due to
examine and approve the final arrangements for the thorny reserve labour
and finalise the 2012 budget, which is slated for tabling in parliament
on Monday.

According to sources, initial agreement has been reached between the
government and the European Commission (EC), European Central Bank
(ECB) and International Monetary Fund (IMF) 'troika' on the terms and
conditions for the reserve labour system planned by the government,
targeting a drastic reduction of the state and the related expenditure.

(AMNA) -- Main opposition New Democracy (ND) leader Antonis Samaras
advocated a "smaller state and fewer taxes" as a prerequisite for Greece
to enter into growth rates, in a newspaper article he wrote appearing
on Sunday.

Samaras strongly criticised the PASOK government of expanding the state by
creating more than 70 general secretariats, directorates and authorities,
and of creating positions and appointing thousands of "political friends"
under intransparent procedures.

In the article, appearing in To Vima newspaper, Samaras warned that the
"tax-grabbing" measures imposed by the government are destroying the
economy and society, and exterminating the middle class completely.

Samaras reiterated his own proposal for reserve labour which, he
explained, does not include layoffs in the public sector but would
drastically reduce the country's deficit without causing problems to
society, "in antithesis with the government's proposal, which sets off
explosions and results in a very small reduction of the deficit".

The ND leader further accused prime minister George Papandreou personally
of winning the last elections by making false promises.

He said that the country's exit from the crisis requires sacrifices,
"but sacrifices with prospect".